In the midst of another round of stories about Airbnb rentals gone awry, the company's valuation is reportedly hitting a remarkable $10 billion.

The Wall Street Journal's sources said that private-equity firm TPG is likely to lead a new funding round that could total between $400 million and $500 million.

That would put the San Francisco home-sharing service on a par with the most highly valued venture-backed companies yet to exit and would appear to take it out of the running for an IPO this year. It would join at that nosebleed level with another San Francisco company, Dropbox, which recently raised funds at a $10 billion valuation, and Palo Alto-based Palantir, which is valued at about $8 billion.

Before this, the startup led by CEO Brian Chesky had raised about $326 million since it was founded in 2007. Its previous backers include Andreessen Horowitz, General Catalyst Partners, Sequoia Capital, Greylock Partners and Digital Sky Technologies.

"Landlords are pissed off that tenants are profiting off their properties," Delene Wolf, executive director of the San Francisco Rent Board, told the Chronicle. "It makes them crazy: They're rent controlled, and the tenant is making more off their property than they can make."

Well, if there are restrictions against sub-letting, landlords have grounds for eviction.

This was last weekend. I think the valuation is disguised damage control.

A valuation means nothing if investors don't invest.

I'd expect that they will likely get the valuation (the article pointing to vc's doing the investing in this round). It's not surprising that they have a lot of opposition though given their business model. People don't like change... especially those industries and asset owners who have to give up power as in the case of local city governments and hoteliers.

Here's the thing..Govt are looking for tax money and Airbnb flies below radar. Hoteliers are seeking to equal the field as best they can and this is one issue they are trumpeting. And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.

NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.

That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.

Also consider the decrease in homeownership over the last few years and the increase in rental demand. Rental agreements usually stipulate no subletting or that it has to be cleared by the landlord/front office before proceeding.

NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.

That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.

Except is not always a clause and it hasn't been a common one. It's also only more an issue for renters. There are now stories of landlords kicking out tenants in favor of AirBnb because they can make a lot more money.

NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.

That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.

Except is not always a clause and it hasn't been a common one. It's also only more an issue for renters. There are now stories of landlords kicking out tenants in favor of AirBnb because they can make a lot more money.

They are building a new customer service center in Portland. Yet ironically, there is no place in the state where their service is legal. It is a violation of both hotel tax laws and land-use laws. If the code enforcement guys have a slow day, all they have to do is look up violators on the AirB&B website.

mindgarden saidThey are building a new customer service center in Portland. Yet ironically, there is no place in the state where their service is legal. It is a violation of both hotel tax laws and land-use laws. If the code enforcement guys have a slow day, all they have to do is look up violators on the AirB&B website.

Yeah, there is no way this company is valued at $10B. It's a total damage control propaganda piece.

mindgarden saidThey are building a new customer service center in Portland. Yet ironically, there is no place in the state where their service is legal. It is a violation of both hotel tax laws and land-use laws. If the code enforcement guys have a slow day, all they have to do is look up violators on the AirB&B website.

Yeah, there is no way this company is valued at $10B. It's a total damage control propaganda piece.

Basically if I was a hotelier I would be up in arms with my local and state officials that these folks skip on paying oftentimes in resort and convention cities a 10-18% "bed" tax.

LOL. All these "sharing" services that skirt local laws are destined to fail or get a smackdown on new laws.. AirBnB, Uber, Lyft, etc. They're eating into tax revenues. I don't think any city with any sort of tourism will sit by and let this continue.

Besides, $10 billion is fuckin insane. ABB (and the other) produce nothing of tangible value. They're a middle man that just connects two parties. That $10B was just pulled out of someone's ass.

That figure was developed by essentially taking the investment dollars proposed and then the percentage to be given to the investor(s). Probably still to be negotiated completely but probably in the neighborhood - not saying it is a good investment just that is how the valuation was derived.

I was looking into air b&b in San Fran. I didn't end up finding a place since I was already there and looking for the same day...but I think the whole concept is pretty neat. A friend of mine rented a full apartment that was very nice off Divisadero.

NJDewd said And the Airbnb hosts dont have much of a way to organize a lobby in opposition, particularly if a number of them don't want the condo assoc/landlords knowing they are renting.

That's because it's likely an illegal sub-let. Airbnb is destined to fail because of this.

Except is not always a clause and it hasn't been a common one. It's also only more an issue for renters. There are now stories of landlords kicking out tenants in favor of AirBnb because they can make a lot more money.

I turned on the t.v. and it was just in time for an ABC World News report on how the hotel industry is "going to war" with Airbnb. I haven't found the video online yet, perhaps too soon since the broadcast. But they said that the hotel chains, especially in NYC, are increasing their prices around 17%, the highest in 4 years, as a way to compete against Airbnb, but that didn't make sense! Airbnb is cheaper than the hotels because they don't offer amenities, just a place to rent in a great location.

More to come when that video uploads. I either heard it wrong or it just doesn't make sense.

Airbnb is said to have closed a $475 million round of financing from a group led by TPG Growth that values the home-sharing company at about $10 billion, Michael J. de la Merced writes in DealBook. At the value assigned by the investment, Airbnb — a website and app where homeowners and apartment dwellers rent their homes, spare rooms or couches to travelers — would be worth more than some established hotel chains like Wyndham Worldwide or Hyatt.

Airbnb is also set to meet New York State’s attorney general, Eric T. Schneiderman, in court this week related to a subpoena filed last fall “to identify bad actors and illegal activity on the platform,” according to TechCrunch. The state is looking to crack down on hosts operating multiple listings.

coolarmydude said"Landlords are pissed off that tenants are profiting off their properties," Delene Wolf, executive director of the San Francisco Rent Board, told the Chronicle. "It makes them crazy: They're rent controlled, and the tenant is making more off their property than they can make."

Well, if there are restrictions against sub-letting, landlords have grounds for eviction.

The rules in SF are so fucked. I would never be a landlord in SF.

If I ever found that a tenant used Airbnb...they would so evicted and sued for damages and loss of income.

Also, I would never use Airbnb to rent a place when traveling. Airbnb not safe for either landlord or people who sign up to use it.